can anyone explain to me two terms in here OPG orders: Envelopes as in widened the envelopes or a .2 envelope. I had stumbled on to this by complete mistake about 2 years back and had tried working on it myself. Im shocked to see how many people profit off this as i had given up too easily i guess. Time to get back to work i guess. Going to be a fun couple of months
OPG is an order type, much like "DAY" order only it means "Opening only" order. You either get filled at the NYSE opening price or not at all (your order is cancelled). Envelope refers to how far away from estimated opening price (based on futures and Fair Value) you place your order. If estimated opening price is $100. a 1% would be $99 bid, $101 offer. Now for the bad news.....first losing day in quite a while. Got stuck in HAL ...oh well, lost 45 cents (too much). Have a great weekend everyone, back to it on Monday. Don
ok fantastic i wasnt too sure but i wasnt far off neither. I forgot what ecn was providing the on open orders i was using but it was named something different. Ill keep reading now I think its going to be a fun weekend for me
No ECN's only NYSE.....we play the actual "primary market" openings, be careful of "consolidated opening prices" etc. Don
Does anyone use seperate "buy lists" and "sell lists" if trading pairs? If I have a Long KO bias and a short PEP bias should I consider only trying to "Buy" KO and "sell" PEP and manage losses possibly by pairing? Or would this compromise the integrity of this trading strategy? Currently, I have 60 stocks on my list. I have 20 companies, then two peers for each. Pretty much the first 40 came from my pair trading then I added a "third" to each. So as a pair trader I am hard wired to be long one and shirt the other but I often find myself long both KO and PEP (for example). Sometimes long all three companies in the peer group. Is this how it "should" be? Any thoughts would be most appreciated.
Stick with the pairs. I play openings this way. I think its crazy to take the open and be guessing a direction to get filled. With pairs, I actually buy the pair withing 10-15 minutes before the close and place limit orders for the next day's open. I'm looking to make 50 cents-1.00 per pair. If I can get it at the open because guys like Don like to do the openings with decent windows. So when Don is buying or selling a stock at the open, I'm providing him the window/envelope he wants. Less risk and it sounds like you are risk adverse because of the pairs question, but you also sound like you have a risk taking appetite streak in you. Get over that and you will start listening to yourself and do what you say you do versus what you do. T
Not me. I'm always on both sides. You could, I dont. You could manage losses by pairing if your too slow to take losses but fast enough to make the pairing. I thought about it but I think it's messy. When you are in 3-4 stocks by 9:30:20 and you still have other OPG orders active it's hard to manage all that. No, by taking one side you reduce your opportunities but you are still doing the same thing on one side. Pairing is a good idea I guess but it adds complication to the process. (What tells you that your 2nd stock is oppened and you can pair at the moment you want?, ...) Make it your way. Do what is sound to you and what works your way. The goal is to make money, whathever way (legaly I mean ).